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Gold jumps to over 3-month tops, around $1330 area

   •  The prevailing USD selling bias helped gain positive traction for the fourth straight session.
   •  Increasing bets that the Fed might be forced to cut rates remained supportive of the move.

Gold continued scaling higher through the early European session on Tuesday and touched over three-month tops, around the $1329-30 region in the last hour.

The precious metal added to its recent strong gains beyond the key $1300 psychological mark and traded with a bullish bias for the fourth consecutive session amid heightened global trade tension.

Meanwhile, the recent trade war jitters continued fueling fears of a sharp economic slowdown and now seemed to have forced investors to start pricing in a possible Fed rate cut by the end of this year. 

The same was reinforced by St. Louis Fed President James Bullard's overnight comments that a rate cut may be warranted soon, provided an additional boost to the non-yielding yellow metal.

Adding to this, broad-based US Dollar weakness further underpinned the dollar-denominated commodity and remained supportive of the ongoing move to the highest level since late-February.

Bulls seemed rather unaffected by some signs of stability in the global equity markets, which tends to dent the precious metal's safe-haven status, and even shrugged off a goodish bounce in the US bond yields.

Moving ahead, Tuesday's scheduled speech by the Fed Chair Jerome Powell will be looked upon for the central bank's near-term monetary policy outlook and might eventually provide a fresh directional impetus.

Technical levels to watch

XAU/USD

Overview
Today last price1328.2
Today Daily Change3.44
Today Daily Change %0.26
Today daily open1324.76
 
Trends
Daily SMA201287.52
Daily SMA501287.79
Daily SMA1001296.95
Daily SMA2001262.76
Levels
Previous Daily High1328
Previous Daily Low1306.18
Previous Weekly High1306.9
Previous Weekly Low1275.1
Previous Monthly High1306.9
Previous Monthly Low1266.35
Daily Fibonacci 38.2%1319.66
Daily Fibonacci 61.8%1314.51
Daily Pivot Point S11311.29
Daily Pivot Point S21297.82
Daily Pivot Point S31289.46
Daily Pivot Point R11333.11
Daily Pivot Point R21341.47
Daily Pivot Point R31354.94

Author

Haresh Menghani

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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